Allowing Members to Choose Whomever They Wish to Be with in a Dyad

question 12

True/False

Allowing members to choose whomever they wish to be with in a dyad is never a good idea because members will usually choose their friends as partners.​

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Definitions:

Agency Costs

The costs associated with resolving conflicts of interest between principals and agents, including monitoring and incentive expenses.

Principals

Individuals or entities that authorize agents to act on their behalf in business transactions.

Incentivizing Agents

Strategies to motivate individuals or entities acting on behalf of others or organizations towards desired behaviors or goals, often through rewards or benefits.

Agency Costs

Expenses and losses in value occurring when there is a conflict of interest between the principals (owners) and the agents (managers) of a company.